Wrap Text
PGM Production Report for the Second Quarter ending 30 June 2020
ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
(“The Company" or "Anglo American Platinum")
16 July 2020
ANGLO AMERICAN PLATINUM LIMITED
PGM PRODUCTION REPORT FOR THE SECOND QUARTER ENDING 30 JUNE 2020
OVERVIEW - PRODUCTION
- Resilient business – managing through the headwinds of national lockdowns during Covid-19 pandemic
- Commitment to elimination of fatalities – no fatalities occurred in Q2 2020, continuing the fatal-free period
at managed operations
- Strict implementation of Covid-19 prevention measures - including social distancing, hygiene measures,
screening and testing, and provision of PPE – resulting in no operation needing to close due to spread of
Covid-19 amongst employees
- Total PGM production (expressed as 5E+Au metal in concentrate) decreased 41% against prior year (Q2
2019) to 665,100 ounces, largely due to the impact of shutdowns implemented in South Africa and Zimbabwe
in response to curbing the outbreak of COVID-19. This led to a loss of c.521,600 PGM ounces in the quarter
- Own managed mines PGM production decreased by 40% to 379,400 ounces largely due to the COVID-19
shutdowns and subsequent ramp-up leading to a loss of 286,500 ounces, however impact was partially
mitigated as open-pit and mechanised operations were able to safely ramp-up production faster (98%
production level at the end of June)
- Joint venture PGM production (mined and purchase of concentrate) decreased by 55% to 101,600 ounces
largely due to the Covid-19 shutdowns, and the result of declaring force majeure leading to Kroondal material
being processed by third parties
- Refined PGM production excluding tolling decreased by 67% to 407,000 ounces, primarily due to the
temporary closure of the Anglo Converter Plant B unit (ACP) for repairs which was offline for 54 days in Q2
- PGM sales volumes (excluding tolling and 4E POC sales that are now tolled) decreased 55% to 548,000
ounces due to lower refined production, partially supplemented by a drawdown in refined inventory
Anglo American Platinum Q2 2020 Q2 2020 H1 2020
PGM Production Report - Q2 2020 Q2 Q1 Q4 Q3 Q2 vs vs H1 H1 vs
1 April 2020 - 30 June 2020 2020 2020 2019 2019 2019 Q2 2019 Q1 2020 2020 2019 H1 2019
Total M&C production (mined and purchase of concentrate)
Total PGM production (5E + Au) 000 oz 665.1 954.8 1,152.7 1,141.2 1,118.7 (41)% (30)% 1,619.9 2,146.9 (25)%
Own managed mines 000 oz 379.4 560.1 675.2 642.5 633.6 (40)% (32)% 939.6 1,234.5 (24)%
Mogalakwena 000 oz 277.6 282.3 317.5 287.7 302.5 (8)% (2)% 559.9 609.7 (8)%
Amandelbult 000 oz 50.1 167.7 238.7 232.9 229.0 (78)% (70)% 217.8 421.7 (48)%
Unki 000 oz 31.3 49.0 52.0 53.8 52.5 (40)% (36)% 80.3 95.8 (16)%
Mototolo 000 oz 20.4 61.2 66.9 68.1 49.6 (59)% (67)% 81.5 107.3 (24)%
Joint venture production 000 oz 101.6 188.8 231.2 248.2 228.2 (55)% (46)% 290.4 438.6 (34)%
Third party purchase of concentrate 000 oz 184.1 205.9 246.3 250.5 256.9 (28)% (11)% 390.0 473.8 (18)%
Refined production
Total refined PGM (5E+Au) production (excluding tolling and 4E purchase of
concentrate now tolled)(1) 000 oz 407.0 612.2 1,308.8 1,168.4 1,216.2 (67)% (34)% 1,019.3 2,003.5 (49)%
Total refined PGM (5E+Au) production (including tolling) 000 oz 503.0 743.9 1,492.1 1,360.7 1,426.9 (65)% (32)% 1,246.9 2,298.2 (46)%
Sales volume excluding trading
PGM sales excluding 4E POC sales now tolled in all periods (5E+Au) (1) 000 oz 548.0 681.3 1,414.1 1,022.9 1,205.6 (55)% (20)% 1,229.3 1,992.1 (38)%
Total PGM sales (5E+Au) 000 oz 548.0 681.3 1,425.3 1,048.4 1,275.1 (57)% (20)% 1,229.3 2,160.0 (43)%
(1) PGM refined and sales volume excluding Sibanye-Stillwater 4E POC in all periods
REVIEW OF THE QUARTER
SAFETY
Anglo American Platinum remains committed to the elimination of fatalities and reports zero fatalities in the period
at managed operations. The Company continues its fatal-free period as a result of the commitment made to
maintaining safety standards through shut down and start-up processes. The Total Recordable Case Frequency
Rate (“TRCFR”) per million hours at managed operations for the quarter improved 27% to 1.93 compared to 2.63
in the prior period.
PGM PRODUCTION
Total PGM production of 665,100 ounces decreased 41% (against prior period Q2 2019), with platinum
production down 41% to 307,500 ounces and palladium production down 34% to 228,500 ounces. The impact of
the shutdowns implemented by the Governments of the Republic of South Africa (RSA) and Zimbabwe in
response to curbing the outbreak of Covid-19 led to a loss of 521,600 PGM ounces in the quarter. In collaboration
with government, labour unions and employees, stringent measures were put in place to protect employees,
including social distancing, hygiene measures, screening and testing, and provision of PPE – resulting in no
operation needing to close due to spread of Covid-19 amongst employees.
PGM production from own managed mines
Total PGM production from own managed mines decreased 40% to 379,400 ounces (platinum production
decreased by 43% to 166,100 ounces and palladium production decreased 30% to 158,600 ounces), largely due
to the Covid-19 shutdowns which led to a loss of 286,500 PGM ounces in the quarter. The impact of the Covid-
19 shutdowns was partially mitigated due to high proportion of open-pit and mechanised operations which could
ramp-up at a faster pace than the conventional underground operations. Open-pit and mechanised operations
were able to get to 98% levels of production by the end of June 2020.
Mogalakwena PGM production decreased 8% to 277,600 ounces (platinum and palladium production both
decreased by 8%, to 117,300 ounces and 128,900 ounces respectively). Mogalakwena surface operations were
granted the right to restart shortly after lockdown began and therefore the North concentrator continued operating
2
by drawing down on ore stockpiles. Thereafter, a gradual increase in operational activity was granted and by the
end of June, Mogalakwena mine was operating at 100% production levels and is expected to do so for the
remainder of the year.
Amandelbult PGM production decreased 78% to 50,100 ounces (platinum and palladium production both
decreased by 78%, to 25,300 ounces and 11,700 ounces respectively), largely due to the Covid-19 shutdowns
which led to a loss of 174,000 PGM ounces in the quarter, as well as the closure of parts of Tumela Upper section
in December 2019 as they reached the end of life of mine (contributing 30,100 PGM ounces in the prior period).
At the end of June, Amandelbult mine reached 50% of targeted production levels and is expected to ramp up to
85% production levels by the end of the year, due to strict compliance to Covid-19 protocols and protecting
vulnerable employees who are not permitted to work on mine-site.
Mototolo PGM production decreased by 59% to 20,400 ounces (platinum production decreased by 59% to 9,500
ounces and palladium decreased by 58% to 5,800 ounces). At the end of June, Mototolo mine was operating at
a production level of around 90% and is expected to reach 100% production levels going forward.
Unki PGM production decreased 40% to 31,300 ounces (platinum production decreased by 40% to 13,900
ounces and palladium production decreased by 42% to 12,100 ounces). At the end of June, Unki mine was
operating at normal production levels of 100% and is expected to continue at this level to the end of the year.
PGM production from joint ventures (50% own mined production and 50% purchase of concentrate)
Joint venture PGM production, decreased by 55% to 101,600 ounces (platinum production decreased by 56% to
45,400 ounces and palladium production decreased by 54% to 29,600 ounces). This was largely due to the
impact of Covid-19 shutdowns causing a loss of 126,000PGM ounces in the quarter, as well as the diversion of
material from Kroondal during the period of force majeure, which was processed by a third party.
Purchases of PGM concentrate from third parties
Purchase of PGM concentrate (POC) from third parties, decreased by 28% to 184,100 ounces (platinum POC
decreased by 23% to 96,000 ounces and palladium POC decreased by 26% to 40,200 ounces), due to the impact
of Covid-19 shutdowns causing a loss of 109,100 PGM ounces during the quarter, as well as the diversion of
Platinum Mile concentrate during the period of force majeure, which was processed by a third party.
Refined PGM production
Refined PGM production, excluding tolling and 4E production now tolled, decreased by 67% to 407,000 ounces
(refined platinum production decreased 71% to 160,600 ounces and refined palladium production decreased by
64% to 147,400 ounces). Refined production was impacted by the temporary closure of the Anglo Converter
Plant (ACP) on 6 March 2020 and a subsequent closure during the first two weeks of June to repair a water leak
which was detected on 3 June.
3
ACP Repairs
A force majeure incident at the ACP (Anglo Converter Plant) on 10 February led to the closure of both ACP phase
A and phase B units from 6 March, with ACP phase B returning to steady state on 12 May. Following a subsequent
closure during the first two weeks of June, the ACP phase B has since ramped-up and is operating at full capacity.
The rebuild of ACP Phase A are ahead of schedule with completion estimated at the end of Q4 2020.
PGM sales volumes
PGM sales volumes, excluding the impact of 4E toll treated material and trading, decreased 55% to 548,000
ounces, with platinum sales volumes down 65% to 195,700 ounces and palladium sales volumes down 64% to
160,900 ounces due to the decrease in refined production, supplemented by a drawdown in refined inventory.
Trading Sales volumes increased by 80% to 210,500 PGM ounces to ensure supply to customers.
2020 full-year guidance
We retain our full-year production and refined production guidance, as updated in the Q1 2020 production report
released on 23 April 2020. PGM production will be between 3.1– 3.6 million ounces, including platinum production
of between 1.45–1.65 million ounces and palladium production of 1.0–1.15 million ounces. Refined PGM
production will also be between 3.1–3.6 million ounces, including refined platinum production of between
1.45–1.65 million ounces and refined palladium production of 1.0–1.15 million ounces.
We acknowledge that significant headwinds exist in the second half of the year, including completing the rebuild
of the ACP Phase A, further Eskom power-outages, as well as the potential impact the Covid-19 pandemic could
have on our performance. Our priorities remain to ensure the safety of our employees and the integrity of our
assets and caution that these headwinds could impact our ability to meet full year guidance.
4
Anglo American Platinum Q2 2020 Q2 2020 H1 2020
PGM Production Report - Q2 2020 Q2 Q1 Q4 Q3 Q2 vs vs H1 H1 vs
1 April 2020 - 30 June 2020 2020 2020 2019 2019 2019 Q2 2019 Q1 2020 2020 2019 H1 2019
M&C production (mined and purchase of concentrate)
PGM production (5E+Au) 000 oz 665.1 954.8 1,152.7 1,141.2 1,118.7 (41)% (30)% 1,619.9 2,146.9 (25)%
Platinum 000 oz 307.5 440.9 531.7 526.8 520.3 (41)% (30)% 748.4 992.2 (25)%
Palladium 000 oz 228.5 303.1 360.4 351.8 347.1 (34)% (25)% 531.6 673.7 (21)%
Tonnes milled 000 4,665 6,498 7,454 7,328 7,271 (36)% (28)% 11,163 14,151 (21)%
Built-up head grade (4E) g/t 3.44 3.44 3.67 3.65 3.55 (3)% (0)% 3.44 3.57 (4)%
Mined operations
Total mined production
PGM production (5E+Au) 000 oz 430.2 654.5 790.8 766.6 747.7 (42)% (34)% 1,084.8 1,453.8 (25)%
Platinum 000 oz 188.8 299.4 361.9 351.7 342.6 (45)% (37)% 488.2 664.7 (27)%
Palladium 000 oz 173.4 232.9 275.0 262.8 260.5 (33)% (26)% 406.3 511.3 (21)%
Tonnes milled 000 4,665 6,498 7,453 7,327 7,270 (36)% (28)% 11,160 14,148 (21)%
Built-up head grade (4E) g/t 3.44 3.44 3.67 3.65 3.55 (3)% (0)% 3.44 3.57 (4)%
Own managed mines
PGM production (5E+Au) 000 oz 379.4 560.1 675.2 642.5 633.6 (40)% (32)% 939.6 1,234.5 (24)%
Platinum 000 oz 166.1 257.5 310.0 296.8 290.5 (43)% (36)% 423.5 565.6 (25)%
Palladium 000 oz 158.6 204.5 241.0 225.9 228.1 (30)% (22)% 363.1 447.7 (19)%
Tonnes milled 000 4,264 5,708 6,479 6,340 6,372 (33)% (25)% 9,970 12,355 (19)%
Built-up head grade (4E) g/t 3.41 3.38 3.66 3.64 3.53 (3)% 1% 3.39 3.55 (4)%
Mogalakwena mine
PGM production (5E+Au) 000 oz 277.6 282.3 317.5 287.7 302.5 (8)% (2)% 559.9 609.7 (8)%
Platinum 000 oz 117.3 121.9 135.8 123.4 127.9 (8)% (4)% 239.2 258.3 (7)%
Palladium 000 oz 128.9 128.7 146.0 130.8 139.5 (8)% 0% 257.5 281.0 (8)%
Tonnes milled 000 3,301 3,250 3,487 3,331 3,506 (6)% 2% 6,551 6,891 (5)%
Built-up head grade (4E) g/t 3.31 3.18 3.51 3.46 3.34 (1)% 4% 3.24 3.42 (5)%
Amandelbult mine
PGM production (5E+Au) 000 oz 50.1 167.7 238.7 232.9 229.0 (78)% (70)% 217.8 421.7 (48)%
Platinum 000 oz 25.3 85.5 120.1 118.4 116.5 (78)% (70)% 110.9 215.1 (48)%
Palladium 000 oz 11.7 39.1 56.0 54.3 53.7 (78)% (70)% 50.8 98.6 (48)%
Tonnes milled 000 380 1,366 1,824 1,803 1,840 (79)% (72)% 1,746 3,430 (49)%
Built-up head grade (4E) g/t 4.25 3.88 4.15 4.15 3.98 7% 9% 3.96 3.93 1%
Unki mine
PGM production (5E+Au) 000 oz 31.3 49.0 52.0 53.8 52.5 (40)% (36)% 80.3 95.8 (16)%
Platinum 000 oz 13.9 21.8 23.3 23.6 23.1 (40)% (36)% 35.7 42.4 (16)%
Palladium 000 oz 12.1 19.6 20.0 21.4 20.9 (42)% (38)% 31.7 37.9 (16)%
Tonnes milled 000 378 516 545 556 538 (30)% (27)% 894 992 (10)%
Built-up head grade (4E) g/t 3.64 3.41 3.41 3.45 3.47 5% 7% 3.51 3.47 1%
Mototolo mine
PGM production (5E+Au) 000 oz 20.4 61.2 66.9 68.1 49.6 (59)% (67)% 81.5 107.3 (24)%
Platinum 000 oz 9.5 28.3 30.9 31.4 23.0 (59)% (67)% 37.7 49.8 (24)%
Palladium 000 oz 5.8 17.2 19.0 19.4 14.0 (58)% (66)% 23.0 30.3 (24)%
Tonnes milled 000 206 576 624 651 488 (58)% (64)% 782 1,045 (25)%
Built-up head grade (4E) g/t 3.13 3.27 3.30 3.24 3.16 (1)% (4)% 3.23 3.19 1%
Joint venture mined production
PGM production (5E+Au) 000 oz 50.8 94.4 115.6 124.1 114.1 (55)% (46)% 145.2 219.3 (34)%
Platinum 000 oz 22.7 41.9 51.8 54.9 52.1 (56)% (46)% 64.7 99.1 (35)%
Palladium 000 oz 14.8 28.4 34.0 36.9 32.4 (54)% (48)% 43.2 63.6 (32)%
Tonnes milled 000 401 790 974 987 898 (55)% (49)% 1,191 1,792 (34)%
Built-up head grade (4E) g/t 3.70 3.86 3.75 3.75 3.72 (1)% (4)% 3.81 3.72 2%
Purchase of concentrate
Total purchase of concentrate production
PGM production (5E+Au) 000 oz 234.9 300.3 361.9 374.6 371.0 (37)% (22)% 535.2 693.1 (23)%
Platinum 000 oz 118.8 141.5 169.8 175.1 177.6 (33)% (16)% 260.2 327.5 (21)%
Palladium 000 oz 55.1 70.2 85.3 89.0 86.6 (36)% (22)% 125.3 162.4 (23)%
Joint ventures purchase of concentrate
PGM production (5E+Au) 000 oz 50.8 94.4 115.6 124.1 114.1 (55)% (46)% 145.2 219.3 (34)%
Platinum 000 oz 22.7 41.9 51.8 54.9 52.1 (56)% (46)% 64.7 99.1 (35)%
Palladium 000 oz 14.8 28.4 34.0 36.9 32.4 (54)% (48)% 43.2 63.6 (32)%
Third party purchase of concentrate production
PGM production (5E+Au) 000 oz 184.1 205.9 246.3 250.5 256.9 (28)% (11)% 390.0 473.8 (18)%
Platinum 000 oz 96.0 99.6 118.0 120.3 125.5 (23)% (4)% 195.6 228.4 (14)%
Palladium 000 oz 40.2 41.8 51.3 52.1 54.2 (26)% (4)% 82.0 98.8 (17)%
5
Anglo American Platinum Q2 2020 Q2 2020 H1 2020
PGM Production Report - Q2 2020 Q2 Q1 Q4 Q3 Q2 vs vs H1 H1 vs
1 April 2020 - 30 June 2020 2020 2020 2019 2019 2019 Q2 2019 Q1 2020 2020 2019 H1 2019
Refined production excluding tolling and 4E purchase of concentrate now tolled in all periods
PGM (5E+Au) 000 oz 407.0 612.2 1,308.8 1,168.4 1,216.2 (67)% (34)% 1,019.3 2,003.5 (49)%
Platinum 000 oz 160.6 240.3 624.9 564.4 559.0 (71)% (33)% 400.9 923.1 (57)%
Palladium 000 oz 147.4 197.1 394.4 355.4 410.8 (64)% (25)% 344.5 678.4 (49)%
Base metal production
Nickel tonnes 1,997 3,129 6,388 6,827 5,591 (64)% (36)% 5,126 9,822 (48)%
Copper tonnes 1,533 3,014 4,157 3,343 3,554 (57)% (49)% 4,547 6,711 (32)%
Chrome 000 t 64.6 196.4 247.6 236.9 240.9 (73)% (67)% 260.9 424.2 (38)%
Toll refined production
4E 000 oz 96.0 131.6 174.7 168.7 153.4 (37)% (27)% 227.6 153.4 48%
Platinum 000 oz 58.4 78.6 104.4 100.9 97.9 (40)% (26)% 137.0 97.9 40%
Palladium 000 oz 30.0 40.4 54.0 51.4 49.1 (39)% (26)% 70.4 49.1 43%
Refined production excluding tolling
PGM Production (5E+Au) 000 oz 407.0 612.2 1,317.4 1,192.0 1,272.5 (68)% (34)% 1,019.3 2,140.6 (52)%
Platinum 000 oz 160.6 240.3 629.7 578.5 591.0 (73)% (33)% 400.9 1,002.7 (60)%
Palladium 000 oz 147.4 197.1 396.6 362.0 428.4 (66)% (25)% 344.5 721.9 (52)%
Minor PGMs and gold 000 oz 99.0 174.9 291.0 251.5 253.2 (61)% (43)% 273.9 516.4 (47)%
Sales volume excluding trading and 4E purchase of concentrate now tolled in all periods
PGM (5E+Au) 000 oz 548.0 681.3 1,414.1 1,022.9 1,205.6 (55)% (20)% 1,229.3 1,992.1 (38)%
Platinum 000 oz 195.7 239.9 662.0 522.2 557.8 (65)% (18)% 435.6 916.0 (52)%
Palladium 000 oz 160.9 222.5 432.7 309.7 451.3 (64)% (28)% 383.4 711.1 (46)%
Sales volume excluding trading
PGM (5E+Au) 000 oz 548.0 681.3 1,425.3 1,048.4 1,275.1 (57)% (20)% 1,229.3 2,160.0 (43)%
Platinum 000 oz 195.7 239.9 668.4 537.4 595.2 (67)% (18)% 435.6 1,009.4 (57)%
Palladium 000 oz 160.9 222.5 435.8 316.9 475.9 (66)% (28)% 383.4 768.0 (50)%
Trading sales volume (2)
PGM (5E+Au) 000 oz 210.5 248.6 54.3 110.1 117.0 80% (15)% 459.2 184.7 149%
Platinum 000 oz 84.2 62.1 10.6 17.5 13.0 547% 36% 146.3 18.0 713%
Palladium 000 oz 123.1 169.2 42.8 79.6 81.0 52% (27)% 292.3 139.7 109%
Realised metal, Fx and realised basket prices
Platinum (US$/oz) 790 919 895 877 837 (6)% (14)% 857 831 3%
Palladium (US$/oz) 2,029 2,222 1,758 1,501 1,400 45% (9)% 2,141 1,400 53%
Rhodium (US$/oz) 8,964 8,998 5,525 3,791 3,006 198% (0)% 8,985 2,840 216%
Average Fx achieved on sales ZAR/US$ 18.08 15.36 14.68 14.70 14.38 26% 18% 16.44 14.26 15%
US$ realised basket price (/Pt oz) 4,920 6,010 3,187 2,611 2,731 80% (18)% 5,520 2,685 106%
ZAR realised basket price (/Pt oz) 88,937 92,277 46,748 38,343 39,266 126% (4)% 90,776 38,305 137%
US$ realised basket price (/PGM oz) 1,757 2,116 1,494 1,338 1,275 38% (17)% 1,956 1,255 56%
ZAR realised basket price (/PGM oz) 31,765 32,489 21,921 19,653 18,329 73% (2)% 32,166 17,901 80%
(2) Trading sales volume – not produced by Anglo American Platinum operations
Note: (5E+Au) refers to Platinum, Palladium, Rhodium, Iridium, Ruthenium + Gold
(4E) refers to Platinum, Palladium, Rhodium, Gold
Sponsor
Merrill Lynch South Africa Proprietary Limited
For further information, please contact:
Investors: Media:
Emma Chapman Jana Marais
(SA) +27 (0) 11 373 6239 (SA) +27 (0) 11 638 2607
emma.chapman@angloamerican.com jana.marais@angloamerican.com
Notes to editors:
6
Anglo American Platinum Limited is a member of the Anglo American plc Group and is a leading primary producer
of platinum group metals. The company is listed on the Johannesburg Securities Exchange (JSE). Its mining,
smelting and refining operations are based in South Africa. Elsewhere in the world, the Group owns Unki Platinum
Mine in Zimbabwe. Anglo American Platinum has a number of joint ventures with several historically
disadvantaged South African consortia as part of its commitment to the transformation of the mining industry.
Anglo American Platinum is committed to the highest standards of safety and continues to make a meaningful
and sustainable difference in the development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American is a leading global mining company and our products are the essential ingredients in almost
every aspect of modern life. Our portfolio of world-class competitive mining operations and undeveloped
resources provides the metals and minerals that enable a cleaner, more electrified world and that meet the fast
growing consumer-driven demands of the world’s developed and maturing economies. With our people at the
heart of our business, we use innovative practices and the latest technologies to discover new resources and
mine, process, move and market our products to our customers around the world – safely, responsibly and
sustainably.
As a responsible miner – of diamonds (through De Beers), copper, platinum group metals, iron ore, coal, nickel
and manganese – we are the custodians of what are precious natural resources. We work together with our
business partners and diverse stakeholders to unlock the sustainable value that those resources represent for
our shareholders, the communities and countries in which we operate, and for society as a whole. Anglo American
is re-imagining mining to improve people’s lives.
www.angloamerican.com
7
Date: 16-07-2020 08:00:00
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